Burundi bans cryptocurrencies: Is volatility to blame?

Burundi bans cryptocurrencies in its vicinity and the government is not in favor of making trades, transactions or conducting business in any way that involves non-tangible financial assets to be used for equivalent exchange.

The country touches the Democratic Republic of Congo, Rwanda, and Tanzania. While the countries surrounding Burundi have no vendetta against cryptocurrencies, Burundi refuses to let its inhabitants be subjected to cryptocurrency volatility.

The government of Burundi bans cryptocurrencies as measures to ‘protect’ its people. The bank of the Republic of Burundi stated that the government has been asked for help by a large crowd of crypto traders who have lost large sums in their trading sessions to volatility. The high volatility of the market is being blamed in this case. The only preventative measure that can now be taken is to ban the crypto trade throughout the country.

The digital coins have been deemed illegal in the country and strong action will be taken against those that go against the law to trade in crypto. The director of Burundi central bank’s micro-finance wing, Alfred Nyobewumusi, told the press that trading in cryptocurrency will not go unpunished.

The central bank of Burundi shows concern over the fact that cryptocurrencies are free radicals with no legal tender in the assets market, that these cryptocurrencies aren’t held by any government, and certainly not welcome in this country anymore.

Remittances and other payment services are also revoked while remittances alone formed 1.2% of Burundi’s gross domestic product last year, according to World Bank data.

Burundi bans cryptocurrencies- and for more than one reason.

Kenya Coin has another theory to share in its tweet. The speculation makes Burundi seem like it is working to keep the Burundian franc alive:

#Burundi is not banning bitcoin because “it couldn’t offer digital money users protection in case of problems”. It is banning #bitcoin because its currency is being devalued, and they think making bitcoin trading illegal is an easy and effective “capital control” measure measure. pic.twitter.com/1XYrFxAh7b

Furthermore, Kenya Coin expressed that many crypto traders disagree with the ‘safety’ method employed. Most traders still have their stock in the market and are well aware of the potential risks that inhibit such places. They want to continue with the program. Trading on a multinational platform should not be taken lightly especially when one’s assets are on the line.

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About The Author

A first generation gamer at heart and tech buff by nature, have been involved in the tech sector for better part of a decade. With that insight and knowledge, he now covers blockchain, cryptocurrency and everything fintech so others can make sense of the industry.